SINA Corp. (SINA - Analyst Report) is set to report first quarter 2013 results on May 16. SINA reported fourth quarter earnings of 5 cents per share, much better than the Zacks Consensus Estimate of a loss of 2 cents. Let’s see how things are shaping up for the upcoming announcement.
Growth Factors This Past Quarter
Although SINA’s fourth quarter earnings comfortably surpassed the consensus mark, revenues missed the Zacks Consensus Estimate of $143.0 million. Revenues (excluding deferred revenue) jumped 4.4% year over year to $134.4 million in the reported quarter and were within management’s guided range of $132.0 million to $136.0 million.
SINA expects non-GAAP net revenue to be between $115.0 million and $119.0 million for the first quarter of 2013. Currently, the Zacks Consensus Estimate for revenues is pegged at $124.0 million, slightly higher than management’s guided range.
The Zacks Consensus Estimate for the first quarter stands at a loss of 11 cents. For fiscal 2013, the estimate is pegged at earnings of 32 cents per share.
SINA posted positive surprises in three of the four preceding quarters with an average positive surprise of 217.0%.There were no estimate revisions for both the first quarter and fiscal 2013 over the past 30 days. As a result, the Zacks Consensus Estimate for both periods has remained unchanged.
The chances of a big surprise are unlikely given the lack of catalysts during the quarter. The stock carries a Zacks Rank #3 (Hold).
We caution against stocks with Zacks Ranks #4 and #5 (Sell rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Other Stocks to Consider
Our model states that a stock needs to have both a positive Zacks Earnings ESP (Read: Zacks Earnings ESP: A Better Method) and a Zacks Rank #1, #2 or #3 to beat earnings estimates. You could, therefore, consider stocks like:
Hasbro Inc (HAS - Analyst Report), Earnings ESP of +3.03% and Zacks Rank #2 (Buy)
International Game Technology (IGT), Earning ESP of +3.23% and Zacks Rank #2 (Buy)
Webcom Group Inc , Earnings ESP of +2.38% and Zacks Rank #3 (Hold)